|
"The positive outlook reflects the potential that Austria's
energy supply position improves further while its economy
remains robust over the next 24 months," S&P said in a statement
late on Friday, affirming the country's AA+/A-1+ long- and
short-term foreign and local currency sovereign credit ratings.
The positive outlook also reflected the possibility of clear and
discernible budgetary consolidation, with declining budget
deficits, the agency added, delivering its view as Austria's
government gears up for a general election on Sept. 29.
S&P said it considered Austria's economy to be "broadly
resilient", even if a longstanding take-or-pay contract between
Austria's biggest energy supplier OMV and Russian gas firm
Gazprom ends at the close of this year, when the gas transit
contract between Russia and Ukraine is due to expire.
It noted that while Austria's exposure to Russian gas remains
relatively high, at 83% of total gas imports as of June, it
found that the country had made significant progress in
diversifying its energy supplies.
Thus, Austria looked well equipped to handle potential
short-term disruptions arising from the end of the transit
contract between Ukraine's Naftogaz and Gazprom, S&P said.
The rating agency expects Austria to post a general government
deficit of 3.0% of gross domestic product (GDP) this year, which
it forecast would shrink to 2.5% by 2027.
S&P noted that budgetary plans pursued by a new government after
the election could differ from its current forecast, and might
need to follow a stricter consolidation path to be compliant
with the European Union's fiscal framework.
(Writing by Dave Graham; Editing by Kirsten Donovan)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
